Caricom states are moving closer to the realisation of the single market and economy but progress is slow and heads have instructed regional trade negotiators to be sensitive to commitments on liberalisation in the agricultural sector.

Regional leaders at the just-concluded 15th Inter-sessional Meeting of the Conference of Heads of Government in St. Kitts-Nevis said members states will have to show dedicated attention to meet the 2004/2005 Caricom Single Market and Economy (CSME) deadline.

The Communique issued at the end of the meeting said only Barbados, Jamaica and Trinidad and Tobago are expected to complete the introduction of basic key elements for the establishment of the Single Market. But the leaders noted that progress is evident in the creation of the legal base for the CSME as a number of states are at the stage of ensuring that the revised treaty is adopted.

So far, all Member States, save for Antigua and Barbuda and St. Kitts, have put in place provisions for the free movement of media workers, graduates, musicians, artists and athletes.

Trinidad has met the 2003 commitments for the removal of restrictions to establish a Single Market for the creation of enterprises, providing services and moving capital. Antigua and Barbuda, Guyana and St. Vincent and the Grenadines have gone part of the way, while other Members States have indicated that they are now treating their 2003 and 2004 commitments as a package for removal in this year.

Meanwhile, issues relating to the facilitation of intra-regional travel given heightened security considerations and the introduction of a Caricom passport were shelved for the annual Conference, which will be held in Grenada in July. But in the interim, all but two Members States have arrangements at their immigration points of entry for the common treatment of host country nationals and other Caricom nationals.

The heads noted that President Bharrat Jagdeo in his role as the lead person for agriculture had already received positive responses from the FAO and IICA for assistance in developing a strategic plan in this sector.

"Heads of Government instructed the region's external negotiators - in the WTO and the various FTAs - to be sensitive to the rate at which the region commits to the liberalisation of its agricultural sector and, in particular, its most sensitive agricultural products", the communiqué said.

On external trade negotiations, heads noted that political developments and entrenched positions on agriculture have made it difficult to settle issues at the multilateral and hemispheric levels.

"Developing countries in all theatres of negotiations must reinforce their demands by bringing greater specificity to their proposals. In this regard, the region will continue to strengthen its strategic alliances and in particular with other developing countries", the communiqué added.

Touching on the Free Trade Area of the Americas, heads acknowledged that delays had imperiled the existing schedule for agreements but they said they remain convinced that it is worth allocating the extra time to ensure an agreement that furthers economic development.

Caribbean Court of Justice
Appointments of judges to the Caribbean Court of Justice (CCJ) are expected to be made by the end of May, four months before the regional leaders hope to have the court inaugurated.

Member States have already enacted the necessary legislation and the recommendations from the Regional Judicial and Legal Services Commission (RJLSC) for the Presidency of the Court and the posts of six judges are being finalised. The Board of Trustees responsible for financing the CCJ is functioning and is now detailing proposals for investment guidelines and financial regulations for approval by members. The Board has also identified a short list of candidates for the Post of Chief Executive Officer. Only one Member State has not signed the supplementary Loan Agreement with the Caribbean Development Bank.

The governments have directed that the Preparatory Committee and the High-Level Task Force, which are involved in preparations, should work in consultation with the RJLSC and the Prime Minister responsible for Justice and Security, to finalise arrangements for the inauguration of the Court by the third quarter of the year.

Sugar and bananas
Regional leaders agreed to intensify representation to ensure that the value of the Sugar Protocol is maintained. This is given the importance of preserving access to the European Union market for Caricom sugar, which continues to face challenges in the form of new trading arrangements which have forced reviews of commodity protocols.

The governments are also rallying behind steps to retain and improve access to the United States sugar market. The same position was adopted on the Caricom market as they have noted the necessity of maximising the utilisation of the market by Caricom sugar producers at remunerative prices. And in this regard, they stressed the need for the urgent establishment of sugar refining capacity in the region to meet its needs.

The leaders were extremely disturbed at the drop in earnings after the implementation of the European Union banana Import Regime in 2001.

In an attempt to protect the flagging banana industry, they urged that the international community, and in particular the European Union and the United States, weigh the impact of further changes to the regime.

They felt the market could get worse after the accession of ten new members to the EU and the introduction of the tariff only system in 2006, if these arrangements are not designed to take account of the sensitivity of the market.

Fiscal, monetary and financial issues
The Programme for the Stabilisation and Transformation of Caribbean Economies was also discussed by the leaders, who said Member States have arrived at a consensus that there was insufficient enthusiasm for the Regional Stabilisation Fund (RSF). They reached this consensus, noting that it was despite two years of work to develop the concept and mobilise support for it.

Trinidad and Tobago had already committed US$45M in the event that the RSF came into existence. Since it is no longer on the cards, some of the Member States felt that the amount should be converted into an initial contribution to some other mechanism, like the Development Fund for Disadvantaged Countries, Regions and Sectors.

In this vein the government of Trinidad and Tobago indicated that it would be willing to have its newly-created US$16M Caricom Trade Facility incorporated into the Regional Development Fund, when the fund is up and running.

Crime and Security
Caricom has agreed to extend the life of the Caricom Regional Task Force on Crime and Security and that the Coordinating Information Management Authority be established to develop the protocols for the regional information sharing mechanism. This was said to be especially important in view of the implementation of the CSME and the 2007 Cricket World Cup, which is being hosted in the Caribbean.

Meanwhile, the regional leaders are pushing for a meeting with the US Secretary for Homeland Security, Tom Ridge, as part of efforts to engage the USA on issues of mutual interest. Issues like security, crime, the continued deportation of criminals to the Caribbean, border security, maritime cooperation and justice related matters, as well as the global war on terrorism were cited. It was noted that the US has been positive about a meeting at the ministerial level.

Major priorities in the region include a regional information and intelligence sharing mechanism, border security enhancement, regional maritime cooperation and a regional rapid response mechanism which will all form part of a regional security strategy.

ACS
Following a review of the operations of the Association of Caribbean States (ACS)over the last decade, the heads said they agreed that Caricom members should indicate to the body that the ACS Secretariat should operate as originally conceived: as a secretariat of secretariats and not duplicate the efforts of other sub-regional organisations.

Head welcomed the election of Dr Ruben Silie of the Dominican Republic as the Secretary-General (SG) of the ACS and paid tribute to Dr Norman Girvan of Jamaica whose term as SG has come to an end.

Belize-Guatemala relations
The Heads of Government reaffirmed their support for Belize's sovereignty and territorial integrity in the face of Guatemala's claims on Belizean territory.

Noting that a new government was installed in Guatemala in January this year the Caricom leaders hoped that it would abide by the Agreement to Establish a Transition Process and Confidence Building Measures between Belize and Guatemala. The agreement was signed by the previous administration with Belize and the Organisation of American States.

The leaders said they were convinced that this represents the best option for a just, equitable and permanent solution to the dispute and they urged both governments to abide strictly by the provisions.

Energy
The Task Force on Energy presented a progress report to the conference focusing on access to energy resources, the joint procurement and processing of crude petroleum and a study on the rationalisation of the regional energy sector.

The complexity of the energy issue and the urgent necessity for an acceptable regional policy and legal framework informed the leader's decision to ask the Secretary General to establish a mechanism to secure a clear conclusion of the legal issues by the July Conference.

Fisheries
The leaders also gave their support to the definition of a Common Regional Fisheries Regime, which would be without prejudice to the settlement of maritime boundary disputes. A raging row recently flared up between Barbados and Trinidad. Barbados has since taken the matter to the Law of the Sea Convention Tribunal.